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Toll bids for Hong Kong freight group

Transport group Toll Holdings Ltd has made a bid for Hong Kong-based freight forwarder BALtrans Holdings valuing the target at $A365 million.

Announcing the bid this morning, Toll says it has already wrapped up 44% of the target through commitments from BALtrans's founding shareholders.

BALtrans is listed on the Hong Kong Stock Exchange.

Toll says it is one of the largest Asia-based freight forwarding and logistics companies with an international network spanning all major cities in Asia, North America, Europe, Africa and Middle East, with annual revenue of approximately $A690 million.

"The inclusion of BALtrans with the Toll Group based on historicals would result in annual revenues outside Australia and New Zealand of in excess of $A1.2 billion, which is over 20% of our evenues, excluding Virgin Blue," Mr Little said.

Toll is offering BALtrans shareholders $HK7.60 ($1.13), but the offer will rise to $HK7.75 ($1.16) if more than 90% of shareholders agree to the deal.

"The bid represents a premium of 41% over the pre-announcement trading price, reflecting Toll's desire to take control of such a quality business network," Mr Little said.

Toll will fund the acqusition with existing debt facilities and expects it will add to earnings per share in its first full financial year.